Should Merchants Use Multiple Affiliate Networks?

[Linda Buquet]

Should Merchants Use Multiple Affiliate Networks? It's a multi-dimensional issue that raises a variety of tracking and reporting questions and there is not a single answer that's right for every affiliate program.

In general (although it depends on the program) I recommend, at most, an in-house program and one network program. That way you can give affiliates the choice of higher payouts, longer cookies and more direct support with the Indie or the convenience of a network for the many affiliates that prefer that option. I really do not advocate merchants being on multiple networks. But that's just me.

Jeff Molander recently held a Paying For Performance Webinar where he posed the question to leading affiliate marketing veterans and managers including:

Donald Schamber, Online Marketing Manager, Vistaprint.com
Carolyn Tang, Client Services Dir, Shareasale
Jonathan Miller, Founder, Forge Corporation
Jamie Birch, Dir, Affiliate Marketing, Converseon (formerly of Coldwater Creek)
Chris Sanderson, Managing Partner of AMWSO

Their answers and a great discussion was just published over at Shop.org. If you are a merchant either already on or considering a multi-network strategy, this should be on your must-read list.

Should Retailers Use Multiple Affiliate Networks?

Affiliates what do you think? All the discussion above was centered around what's best for the merchant. What's your stance on the issue?

[John Jupp]

There are always exceptions Linda so I am going to suggest the opposite approach.

Many networks are specialist in their approach. Namely some networks perform better in a particular field or niche than others and concentrate on merchants from that particular aspect. However the overriding issue is not which network but rather...is that network able to deliver the quality traffic I need from the target audience I wish to attract?

Many networks individually are excellent. Some are appalling. However many fail the litmus test if the merchant is trans national in commerce.

So more than one network is essential.

We are launching a huge multi million dollar venture in June/July which I am OPM and this venture has an in house module plus a minimum of three networks. The first is a US network and the second is a UK network (because that's the areas they cover). We may well add a particular Canadian network later and also a trans national network after that. The third network we are going with strictly uses affiliates specialising in blogging and we'll be providing RSS feeds for integration as the model fits in with that field.

Each network operates in a core or particular manner. The UK network is small but high profile and popular with European affiliates. The US network is the darling of the small US affiliate and the third is a must for the blogger monetising their blogsites. Each network therefore operates a differing business model which will fit in with our merchandising and promotion in different ways. Not one network (not even trans national networks) provide that for us individually.

Technology also plays a very important part and whilst I am happy to see networks take on innovations I and others came up with (my goodness is it really so long ago) more than two years ago, we are only now seeing the investment by the networks in new technology and marketing avenues. Again no one network has it all (some are getting close).

So depending on your business model, I would suggest no single network can provide everything you need and that's why companies use OPM's. We research the business model, putting together a marriage between the differing marketing strategies and integrating them into the affiliate channel.

Gone are the days of "if we build it they will come". Success in online marketing is now contingent on so much more. Restricting yourself therefore to a single network is not always in the interests of YOUR business.

[Rob_TID]

From an affiliate perspective, the answer I think is a definite yes.

I personally will not work with in house programs unless I am very sure of the company iteself.

I also like to have a choice of which network to pick it up on.

Just my 2 cents.

[samk]

I think that merchants should definitely use different networks for multiple reasons

1. Get access to large number of affiliates
2. Allows the merchant to negotiate affiliate payout
3. Builds credibility in the market when your site is listed in different locations
4. Build brand value
5. Get access to larger traffic.
6. BACKUP

From affiliate point of view its good because affiliates can select the highest payout for a particular offer in different networks.

[ncmedia]

Great topic - I'm going to have some fun with this one - hopefully I don't say too much either....

Thoughts:
1. It's hard to expect any ONE network to make you uber successful, though it IS possible, and it IS in all of their best interest - however many try to make you exclusive for that very reason - not to dilute the offer/create competition for themeselves... I think if ONE network can outperform all the others (let's say you were with five of them) by a long shot - it would absolutely make sense to go exclusive - however 'putting all your eggs in one basket' is risky, and rarely provides longevity.

2. I have clients who have duplicated sites/systems that are on both - affiliate networks, and go through CPA's/specialists, and have in-house... << This can get really messy however it also provides a HUGE split test for any vendor as they can eliminate the poorest performers/matches and focus on narrowing in on the top converters.

3. While it does give you access to different pools of affiliates, each scenario/network/specialist works differently to some extent. Each have a different way of reaching their database with your offer, some have none, yet the aff pools are much larger and recruitment is a piece of cake... It all comes down to that snowball effect imo - If your offers proves to be a good converting product - they will find you, and rather quickly I might add. I think it's great to see these networks and providers now being pro-active in looking for good offers to bring into their slate, it's about time

4. Depending on how you are setup - you may have to duplicate your site as some providers require a standalone gateway/payment process and having a landing page within your site - with a different domain pointing to it is not enough.

5. It greatly depends on whether you are a digital product or a tangible - obviously digital products can usually offer a higher payout - and therefore have access to digital product aff networks that are all going huge these days...

6. When you are with multiple networks, it will obviously come with SOOO much more analytics and data that you (can) analyze. Each network/provider you work with, you should setup tracking on those pages to monitor what they do - if you are a new vendor you really should do this - you'd be surprized how much you can tell about a networks traffic with simple analytics - we can usually tell if the network will perform or not rather quickly by doing this... Anyway the point of this one is a bigger need for analytics and data mining - which can indeed prove very profitable when testing many networks.

At the end of the day I think 'yes' and 'no' apply here - if you can find a network that blows everyones socks off with your offer - yes it's worth sticking to one and even paying to manage your program. If you have only tried one program and it does not par up to your expectations, yes you should try others - if none perform - it could be the offer or the price or or or - however when one finally starts converting it, pay attention and analyze 'why' they are indeed converting... then duplicate efforts or find complimentary providers.

Personal thought: I have networks/people approach me often with great claims "we say no to 98% of our applicants" and "we never ever ever send wonky or untargeted traffic" or "we have the best of the best of the SA's in our pool" - we give most a shot however the pitch 'usually' outdoes any results we see, so take claims lightly just look at any network as a potential doorway to testing grounds.

From the post above:
"From affiliate point of view its good because affiliates can select the highest payout for a particular offer in different networks."

**This is actually a big nono - from a vendors perspective it is not admirable to offer network x 50% and network y 40% - most networks would laugh at that, it is important to have an equal opportunity with all the networks. From an affiliates point of view - it has little to do with which network is paying more for the same offer as that rarely if ever happens (In fact vendors can get fined by the networks if they are caught doing this)... it has to do with which network offers the best analytics on top of your own, how their cookies (length) are set/served, what type of mining you can do re conversion tracking, what networks receive creatives first, and my personal fav - what networks have the most current and quickest 'no hassle' payout.

Cheers,
Norb.